Boustead sells estate in Johor

PETALING JAYA: Boustead Plantations Bhd (BPB) plans to sell its 76.1% stake in a subsidiary with 995.5 ha plantation land in Johor, to the state’s investment arm Permodalan Darul Ta’zim Sdn Bhd for RM60 million cash.

PDT already owns a 23.9% stake in Boustead Sedili.

The sale of Boustead Sedili Sdn Bhd, will free up RM 57.6 million for the group, which will help repay some of its bank borrowings, saving about RM2.5 million in interest. The group said the move allows it to strengthen its liquidity and cash flow position.

BPB said the disposal presents an opportunity for BPB to realise its investment in Boustead Sedili to PDT at a premium, garnering a net gain of RM31.5 million.

Boustead Sedili Estate’s represents only 1.2% of BPB’s land bank. As at Dec 31, 2015, Boustead Sedili contributed about 1.2% and 1.8% in revenue and profit after tax BPB.